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AURORA · FOREIGN BUSINESS CONTINUITY

Which route fits if the founder plans to close the Canadian business?

USAvisa field guide · 3 minute readReviewed 7 September 2026

Read the general pathway comparison overview

THE SHORT ANSWER

An intended foreign closure is central to the L-1 comparison because the qualifying organization must continue doing business in the United States and another country. E-2 does not impose that same international-operation requirement. Review the actual group and investment facts before assuming closure is either harmless or an automatic reason to choose E-2.

01

Map the remaining international activity

Identify which qualifying entities will continue supplying goods or services abroad after the move. The relevant foreign operation need not always be the original employer, but a dormant registration is not ongoing business. Give counsel the closure and restructuring plan, including ownership and control, before relying on a transfer supported by an organization that may cease qualifying activity.

02

Evaluate the investment without the foreign office

For E-2, examine treaty ownership, the founder’s commitment of capital and direction of the U.S. enterprise. A plan to stop Canadian operations does not itself satisfy those requirements or establish non-marginality. Trace any liquidation proceeds used for investment and explain ownership of the money. Corporate funds and personal capital should not be treated as interchangeable without review.

03

Sequence closure around reviewed facts

Preserve employment, operating and ownership records before systems or accounts are closed. Ask counsel how the proposed timing affects each route, and obtain appropriate business and tax advice separately. Do not maintain fictional foreign activity for an application. A genuine decision to relocate the business should be reflected accurately in the immigration strategy and supporting evidence.

04

Establish what would remain abroad, and for how long

A plan to close the Canadian business changes the L-1 analysis in a way that timing alone does not resolve. The category depends on a qualifying relationship between a foreign entity and the U.S. entity, and that relationship generally needs to continue rather than merely to have existed at filing. Set out precisely what activity would remain abroad, who would conduct it, and whether it is genuine ongoing business rather than a registration maintained for appearance. Then establish how long the founder expects that to last. A candid answer is more useful than an optimistic one, because a structure that is intended to be wound up shortly after a transfer raises the question directly rather than deferring it.

05

Assess the investor case without borrowing the company's history

Where the foreign business is closing, the E-2 assessment has to stand on the U.S. enterprise and the individual's own position. Years of trading elsewhere may explain the founder's capability and the lawful origin of funds, but they do not establish that the U.S. operation is real, non-marginal, or that capital has been irrevocably committed and placed at risk. Test each requirement against what would exist in the United States: the treaty nationality of the individual and of the enterprise's ownership, the investment made and evidenced, the operation's capacity beyond a minimal living, and the founder's ability to develop and direct it. Where the answer depends on proceeds from winding up the Canadian business, that dependency should be identified and sequenced rather than assumed.

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